Workable log grading systems are needed as aids to marketing timber and other phases of forest management. How can on system be evaluated and compared with other systems. The question of comparisons arose soon after the Western Pine Section of the Forest Service's National Log Grade Project was established in 1958. The analytical technique described in this report was developed as an objective, statistically sound method of evaluating log-grading systems. It has been used as the major analytical procedure in developing an advanced system for grading ponderosa pine and sugar pine saw logs in trees. Computations were done first on an IBM 701 computer. These operations demonstrated the usefulness of the technique and confirmed some anticipated limitations.